Correlation Between Antero Midstream and HF Sinclair
Can any of the company-specific risk be diversified away by investing in both Antero Midstream and HF Sinclair at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Antero Midstream and HF Sinclair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antero Midstream Partners and HF Sinclair Corp, you can compare the effects of market volatilities on Antero Midstream and HF Sinclair and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Antero Midstream with a short position of HF Sinclair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antero Midstream and HF Sinclair.
Diversification Opportunities for Antero Midstream and HF Sinclair
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Antero and DINO is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Antero Midstream Partners and HF Sinclair Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HF Sinclair Corp and Antero Midstream is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Antero Midstream Partners are associated (or correlated) with HF Sinclair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HF Sinclair Corp has no effect on the direction of Antero Midstream i.e., Antero Midstream and HF Sinclair go up and down completely randomly.
Pair Corralation between Antero Midstream and HF Sinclair
Allowing for the 90-day total investment horizon Antero Midstream Partners is expected to under-perform the HF Sinclair. But the stock apears to be less risky and, when comparing its historical volatility, Antero Midstream Partners is 1.27 times less risky than HF Sinclair. The stock trades about -0.04 of its potential returns per unit of risk. The HF Sinclair Corp is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 3,641 in HF Sinclair Corp on June 3, 2025 and sell it today you would earn a total of 1,447 from holding HF Sinclair Corp or generate 39.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Antero Midstream Partners vs. HF Sinclair Corp
Performance |
| Timeline |
| Antero Midstream Partners |
| HF Sinclair Corp |
Antero Midstream and HF Sinclair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antero Midstream and HF Sinclair
The main advantage of trading using opposite Antero Midstream and HF Sinclair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antero Midstream position performs unexpectedly, HF Sinclair can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in HF Sinclair will offset losses from the drop in HF Sinclair's long position.| Antero Midstream vs. Antero Resources Corp | Antero Midstream vs. Hess Midstream Partners | Antero Midstream vs. MPLX LP | Antero Midstream vs. Plains All American |
| HF Sinclair vs. Delek Energy | HF Sinclair vs. CVR Energy | HF Sinclair vs. Valero Energy | HF Sinclair vs. Marathon Petroleum Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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